The purpose of the Protecting American Capital Act of 2025 is to enhance transparency regarding U.S. investments in China. It aims to require the U.S. Treasury to provide annual reports on these investments, helping lawmakers and the public understand the extent and nature of American financial involvement in the Chinese economy. Key provisions of the Act include a mandate for the Secretary of the Treasury to submit a detailed report to Congress each year. This report must cover U.S. portfolio investments in China, including those funneled through other jurisdictions.